Section 2 Understanding Stocks and Shares for beginners
Short intro: Welcome to the stocks and share series for begginers. In this class im going to be taking you through all the basics on how to understand the information surrounding stocks and shares and how to become good at fundamental analysis, before at a later time we move on to technical analysis.
We are going to be looking at shares like Tesla, Apple, Murphys oil and more so lets get into the basics
Main bulk of video: What the Google charts on Stocks and Shares Actually mean
The dividend yield is the amount of money a company pays shareholders (over the course of a year) for owning a share of its stock divided by its current stock price—displayed as a percentage
(on the ex dividens day) the stock price should fall in proportion to the value of divdens payed out. This is because once a compnay pays out divdens, they have less money to reinvest and theory states their future growth prospects decrease.
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS)
A high P/E could mean that a stock's price is high relative to earnings and possibly overvalued. Conversely, a low P/E might indicate that the current stock price is low relative to earnings.
Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share